Exxon Mobil has entered into a new offtake agreement with Norwegian operator DNO ASA that will take effect on January 1, 2026. Under the deal, Exxon will purchase roughly half of DNO’s North Sea oil output, while Shell will acquire the remaining half. The agreement also provides Exxon with a revolving credit facility of up to $185 million and a total offtake financing of up to $410 million, giving the company liquidity to support working‑capital needs and future investment opportunities.
DNO’s North Sea production has been expanding rapidly. In the third quarter of 2025 the company produced an average of 77,300 barrels of oil equivalent per day (boed) from the region, and it expects output to approach 90,000 boed by the end of the year. The financing package, combined with a prior gas offtake agreement with ENGIE SA, brings DNO’s total production‑linked financing to $910 million, a level that supports its growth plans following the acquisition of Sval Energi in June 2025.
The deal is a strategic win for DNO. The secured offtake and favorable financing terms reduce commercial risk and provide the company with a predictable cash‑flow stream that can be used to fund further development in the North Sea. DNO’s executive chairman, Bijan Mossavar‑Rahmani, said the agreements “unlock considerable financing at very attractive rates, creating opportunities for continued growth in nervous markets.” The company’s Q3 2025 results were record‑setting, with revenue and operating profit at all‑time highs and a cash balance near $1.5 billion, underscoring the importance of the new financing.
For Exxon Mobil, the agreement diversifies its crude supply base and strengthens its presence in the North Sea, a region where the company has been divesting older assets. Securing a long‑term offtake of North Sea oil allows Exxon to hedge against price volatility and maintain a stable input for its refining and petrochemical operations. The partnership also signals confidence from a growing offshore operator, potentially enhancing Exxon’s reputation among other offshore players and positioning it for future deals in the region.
The financing terms reflect a broader trend of oil companies seeking production‑linked credit to support expansion while managing debt levels. DNO’s ability to secure $410 million of offtake financing at attractive rates demonstrates the market’s confidence in its growth trajectory and the resilience of North Sea production amid volatile global oil prices. Exxon’s participation further validates the commercial viability of DNO’s assets and the strategic value of North Sea crude for major refiners.
The agreement is expected to provide DNO with the financial flexibility to accelerate development projects and to support its capital allocation strategy, while Exxon gains a reliable source of North Sea oil that can be integrated into its existing supply chain. Together, the deal represents a win for both parties in a market that remains sensitive to geopolitical and supply‑demand dynamics.
The transaction underscores the importance of long‑term offtake agreements in the current energy landscape, where companies are balancing the need for secure supply with the imperative to manage financing costs and maintain operational flexibility.
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